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    east to west's Avatar
    east to west Posts: 2, Reputation: 1
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    #1

    Jun 20, 2007, 05:47 PM
    Per Diem in CA
    I have received a daily per diem from a company I work for in San Francisco. I have now been in CA for a year, but still travel home for a week every month. The company has now taken my Per Diem saying that the new CA law states that after a year of subsistence it can be taxed. I have looked for documentation stating this, with no luck. Is it true? And if so are there ways around it?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Jun 21, 2007, 06:09 AM
    I don't have an answer about the per diem, but just curious: it seems you are now a CA resident (having spent > 6 months there). So you're filing CA taxes as a resident, and your old home state as a non-resident - is that right?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #3

    Jun 21, 2007, 08:21 AM
    Go to the website for the CA Franchise Tax Board. You can probably get a synopsis of the law from there.
    east to west's Avatar
    east to west Posts: 2, Reputation: 1
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    #4

    Jun 21, 2007, 03:42 PM
    Quote Originally Posted by ebaines
    I don't have an answer about the per diem, but just curious: it seems you are now a CA resident (having spent > 6 months there). So you're filing CA taxes as a resident, and your old home state as a non-resident - is that right?
    Yes as a resident but mainly because I made all my money for the year in CA and have nothing to claim as income in NC.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #5

    Jun 22, 2007, 05:47 AM
    In that case I would think (though again, I don't really know how the details work in CA) that the per diem would be a taxable benefit paid by your employer, since while you are in CA you are "home," and therefore not incurring any business-related travel expenses.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #6

    Jun 25, 2007, 10:19 AM
    I tend to agree with Ebaines. You in fact are living in California on a permanent basis now, especially if you have not maintained an apartment in NC.
    animal01's Avatar
    animal01 Posts: 8, Reputation: 1
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    #7

    Feb 19, 2008, 06:01 PM
    I live in Arizona and work in San Diego, CA... Arizona is my home-of-record... I had per diem which ended. I am not a resident of CA, just working here in my mind and on paper.

    I was also told by my agency that if I take off 2-3 weeks, we can end and restart my contract WITH per diem.

    Rick
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #8

    Mar 5, 2008, 03:04 PM
    Rick:

    You can do that, but it is a risky proposition. Both the IRS and state tax authorities take a holistic view of your circumstances when it comes to such arrangements,

    If you just take a few weeks off to avoid the tax consequences of getting per diem over a year, the tax authorities will recognize that tactic for what it is and impose the tax anyway.
    animal01's Avatar
    animal01 Posts: 8, Reputation: 1
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    #9

    Mar 7, 2008, 02:35 PM
    I ended up going to a tax place... between my temp job out of state plus the small business I run, we got it all covered nicely.

    Thanks for all the comments...

    Rick

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